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Maersk Drilling’s

SustainabilityReport 2010

Sustainability Report 2010.indd 1 02-03-2011 14:55:29


Maersk Drilling

Maersk Drilling as an employer . . . . . . . . . . . . . 19

Health for all . . . . . . . . . . . . . . . . . . . . . . . . 21

Safety on our minds . . . . . . . . . . . . . . . . . . . . 22

Safety initiatives in 2010 . . . . . . . . . . . . . . . . . 24

Dealing with piracy and armed robbery . . . . . . . . 25

Climate change and environment . . . . . . . . . . . 27

Community involvement . . . . . . . . . . . . . . . . . 31

Facts on our Sustainability Performance in 2010 . . 33

Appendix A: GRI Standard Disclosure . . . . . . . . 34

Appendix B: The Maersk Principles of Conduct . . . 37

Appendix C: Impact on the environment

caused by offshore activities . . . . . . 38

Appendix D: Industry practice impacts

performance . . . . . . . . . . . . . . . . 39

Introduction

Company profile . . . . . . . . . . . . . . . . . . . . . . 5

Main impacts and risks . . . . . . . . . . . . . . . . . . 5

Deep dive into sustainability

– a message from the CEO . . . . . . . . . . . . . . . . 7

About the report . . . . . . . . . . . . . . . . . . . . . . 8

Governance . . . . . . . . . . . . . . . . . . . . . . . . . 10

Globally Committed . . . . . . . . . . . . . . . . . . . . 11

Our approach to sustainability . . . . . . . . . . . . . . 13

Stakeholder engagement . . . . . . . . . . . . . . . . 17

Working with sustainability

Performance and policies

Appendices

Contents


Maersk Drilling’s offshore operation aim to go beyond compliance in regards to local and international rules and regulation and in regards to requirements from customers within environmental footprint, our community presence and the way we conduct our business with customers, suppliers and other business partners.


Introduction Sustainability Report 2010 5

Maersk Drilling

Company profile

In addition we manage two mid water

semi-submersibles for two Chinese

companies; Sinopec and COSL.

Maersk Drilling is also a 50 % partner

in Egyptian Drilling Company (EDC)

– a joint venture with Egyptian Gen-

eral Petroleum Corporation. EDC owns

and operates a fleet of more than

55 land rigs and 5 jack-up rigs in the

Middle East.

GeoGraphic reach

Maersk Drilling currently has offices

in Australia, Azerbaijan, Brunei,

Mauritania, Norway, UAE, UK, USA,

Venezuela and Denmark. From these

locations, we operate 26 drilling

rigs and two management rigs. The

rigs currently operate in Denmark,

Norway, USA, UAE (Dubai), Brunei,

Australia, Venezuela, Kazakhstan,

Azerbaijan, Vietnam and off the

coast of a number of countries in

West Africa.

Our revenue in 2010 was USD 1,627

million, increasing by 27 % compared

to 2009.

We employ approximately 3,200

people of whom 2,700 work offshore,

and 500 work onshore. Our customers

include both major oil companies as

well as national and independent oil

companies.

assets

Our drilling rigs prepare well sites for

oil companies to extract fossil fuels

at sea. We command an extensive

and technologically advanced fleet,

consisting of:

• Six harsh environment jack-up rigs. • One mid water semi-submersible. • Three deepwater semi-submersi-

bles. • Four 350 ft & two 375 ft jack-up

rigs. • Ten cantilevered drilling barges.

Maersk Drilling supports global oil and gas production by providinghigh-efficiency drilling services to oil companies around the world. We are part of the A.P. Moller - Maersk Group, and headquarteredin Copenhagen, Denmark.

Main iMpacts and risks

Our material sustainability challenges

are health, safety, environment and

local community involvement. Without

the advanced safety procedures, risk

management and safety culture in

Maersk Drilling, rig operations bear

inherent hazards, a responsibility which

is always our first priority. Our main risks

and concerns all relate to losing control

of a drilling operation which could

potentially lead to loss of lives, environ-

mental disaster and huge economic

consequence for us and the community.

This is why we focus on safeguarding

our work from such loss of control.

Drilling rigs primarily impact the

environment through greenhouse

gas emissions and waste. In terms of

local community involvement – and

besides our own efforts in this area –

we often find ourselves contractually

obliged to invest in the societies of

the countries granting the conces-

sions for drilling.


Without the advanced safety procedures, risk management and safety culture in Maersk Drilling, rig operations bear inherent hazards, a responsibility which is always our first priority.



Maersk Drilling

Deep diveinto sustainability

this will only lead to a safer and more

sustainable industry.

In 2010 several initiatives for driving a

sustainable business saw the light of

the day:

Special attention was given to finalise

the roll out of our new Management

System, SIRIUS, which was imple-

mented on all our rigs and in most of

our onshore locations.

Finalising and commencing imple-

mentation of our CSR strategy was

another milestone reached in 2010.

With the CSR strategy, we will be able

to better support and drive a sustain-

able business.

We have re-focused our safety award

system by further focusing on the

less serious incidents, including

environmental and health related

incidents.

We have improved our HSE focus

by introducing a new safety metric

which, besides safety, now fully en-

compasses environment and health.

In Maersk Drilling the safety of our

crew as well as our customers’ and

third parties’ crew has always been

and will continue to be a top priority.

Therefore, I am also pleased to report

that we again this year have reached

a lost time incident frequency (LTIF)

well below industry average. With

five LTIs in 2010, we have managed to

reduce the number of LTIs from 2009

to 2010, with 50 %. It goes without

saying that five, is five too many. In

2011 we will continue the pursuit of

our goal of zero LTIs.

Unfortunately, we still experience too

many dropped objects and although

special attention was paid to this

important area throughout 2010, we

did not manage to improve the perfor-

mance. In 2011 even more focus will

be given to this and a comprehensive

DROPS campaign will be launched in

spring 2011.

2011 will also see the implementation

of vastly improved well-control train-

ing for our drill crews and Offshore In-

stallation Managers – both individual

and team-based training. We expect

to make significant further direct

investments into this area.

With the above and many more initia-

tives to come in 2011, I look forward to

continue creating an even better foun-

dation for Maersk Drilling to perform in

a safe, secure and sustainable way.

Claus V. HemmingsenCEO of Maersk Drilling

Dear Reader,

I am proud to present Maersk Drilling’s

Sustainability Report for 2010.

For the oil industry, 2010 was regret-

tably characterised by the tragic Ma-

condo accident in the Gulf of Mexico

in April. The accident caused the

entire industry, from oil companies

through contractors, to suppliers and

authorities, to review and consider

enhancing standards for both safety

and environmental procedures. The

accident also led to an intense focus

on our industry from the media and

general public and to an increased

governmental focus which we believe

will result in enhanced and stricter

regulations in 2011. In Maersk Drilling

we welcome any such reviews and

considerations as we firmly believe

a message from our Ceo


Sustainability Report 2010Introduction 8

Maersk Drilling

We report according to Global

Reporting Initiative. GRI, grade C. A

full overview including references to

relevant sections of the GRI report-

ing indicators included in this report

can be found in appendix A, together

with indicators on witch we report

in full, and which are only partially

included, together with information

on which indicators witch we report

in full due to lack of relevance to

our operations or lack of available

data. Furthermore, we have aimed

to align with the AA1000 principles

of materiality, completeness and

responsiveness. As for the latter, we

have not had any direct or indirect

requests from stakeholders, except

for the industry organisations and

regulatory bodies integrated into

our ongoing HSE management

process globally. We also rely on

the stakeholder feedback received

through our recent strategy process

which so far has not led to any

change in the reporting scope.

Our previous report was published

in the summer of 2010. The annual

reporting cycle follows the fiscal year,

1 January to 31 December, and the re-

port should be considered as a supple-

ment to the A.P. Moller - Maersk Group

financial and sustainability reporting.

One vital change compared to last

year is a change in the account-

ing principles from operational to

financial control leading to another

split on emissions regarding scope

1, 2 and 3 in the Greenhouse Gas

protocol. This has a significant

impact on the data presented. The

A.P. Moller - Maersk Group will only

present scope 1 and 2 data whereas

this report will feature all data to

accommodate our customers and

industry practice.

topics included

We report on sustainability issues

material to our business. These were

initially selected in an internal process

in 2009, and consolidated through the

preparation of our new, comprehen-

sive CSR-strategy launched in 2010,

comprising the analysis of external

trends and external stakeholders.

This report includes health, safety

and environmental issues, being the

historical backbone of our sustain-

ability efforts. Furthermore, the report

includes input from engineering, com-

mercial and operations departments.

Also here the main involvement is

within HSE, but the inclusion of these

activities in the reporting process is

an expansion of the report, compared

to the scope of previous reporting.

scope of report

Performance data is reported for all

assets under the direct operational

control of Maersk Drilling, regardless

of ownership. Operational control

implies an asset being subject to our

This report covers the activities of Maersk Drilling in 2010, and provide a balanced and comprehensive view of our operations and other activities.

Aboutthe report



Maersk Drilling

health, safety and environmental

management systems.

Data for this report has been compiled

based on internal reporting from North

Sea drilling operations in Denmark and

Norway, the Caspian Sea drilling op-

erations off Azerbaijan, the American

drilling operations from Venezuela and

the USA, the Middle East drilling opera-

tions in the United Arab Emirates, the

African drilling operations off the coast

of West Africa, the South East Asian

drilling operations off Brunei, and the

Australian drilling operations off West-

ern Australia.

Not included in this report are

performance data originating from

assets or construction work that

are not under our operational con-

trol, i.e. Egyptian Drilling Company,

the mobile offshore drilling unit

MAERSK ENDURER, which is on a

bareboat charter to EDC, and con-

struction projects in Singapore.

principles of data reportinG

The majority of the data in the report

is compiled from the Maersk Drilling

global HSSE performance monitoring

programme with recorded incidents in

our reporting system, Synergi.

For GHG performance, the baseline

data stems from 2008 with the ad-

dition of continuous data collection

from quarterly reports submitted by

each operational area.

The environmental data presented in

this report has been aligned with the

practices of the ‘Oil and Gas Industry

Guidance for Voluntary Sustainabil-

ity Reporting’ by the International

Petroleum Industry Environmental

Conservation Association (IPIECA)

and the American Petroleum Insti-

tute (API).

The consolidated data provides a fair

and accurate picture of our perfor-

mance, with the majority of the data

in this report having been validated in-

ternally as part of the data collection

for the A.P. Moller - Maersk Group

Sustainability Report. The data col-

lection methodology has undergone

significant improvements compared

to last year by means of process

improvement, internal control and,

as a significant contributing factor,

through validation by the account-

ing function. The internal validation

of data serves to add robustness

of data collection. This has been

achieved by a requirement for lo-

cal management sign off on data,

descriptions of data collection

processes, and submission of data

samples from each rig.

Variations in local measurement

and data collection methodologies

exist in the data collection process.

Aligned capture of data, reporting and

consolidation is constantly improved

and these efforts will serve to further

reduce uncertainties.

Safety comes first: Safety is a top priority in Maersk Drilling and we constantly strive to improve our HSE efforts


Sustainability Report 2010Working with sustainability 10

Maersk Drilling

Maersk Drilling’s CEO, in cooperation with the senior management team, is the highest governance body in Maersk Drilling responsible for setting our strategy and for organisational supervision.

Governance

Our activities and leadership are guided

by the A.P. Moller - Maersk Group values

and Principles of Conduct, which outline

our commitment to responsible busi-

ness practices and align expectations

to the conduct of business under the

Maersk name. The principles of conduct

are found in the back of this report.

Both business and sustainability goals

in Maersk Drilling are aligned with the

strategy, priorities and targets set by

the A.P. Moller - Maersk Group. In 2010,

the Group has approved and com-

menced implementation of a Sustain-

ability Strategy which strengthens

and supports the Maersk Drilling CSR

strategy set out.

sustainaBilitY GoVernance

Beyond this overall governance,

Maersk Drilling’s sustainability work is

governed through a sustainability gov-

ernance structure using a set of policies,

strategies, processes and manuals.

Responsibility for sustainability lies

with Maersk Drilling’s CEO, and is

executed through a CSR function and

a CSR steering committee, approving

strategies and assessing progress

at bi-annual meetings. The company

Head of CSR sets strategies and man-

ages implementation, relying on a CSR

network to ensure coordination and

commitment across departments

and the rigs. Implementation of

strategies and activities takes place

through the Maersk Drilling manage-

ment system and operations.

policies and strateGies

At the beginning of 2009, a framework

of three policies covering the areas

of safety and security, health and

environment was issued. Later in

2009, a policy and guidance on anti-

corruption were provided.

Throughout 2009, a CSR strategy

was developed and prepared for

Maersk Drilling and was approved

early in 2010. As a consequence, a

CSR action plan with targets for areas

relevant hereto has been initiated,

including a process to create a CSR

policy and a policy on philanthropy.

These initiatives created the basis for

the first Sustainability Steering Com-

mittee meeting in the fall. The two

before mentioned policies have been

finalised and awaits approval.

In Maersk Drilling, the mapping of

risk, is ongoing and is to be included

in Maersk Drilling’s management

system, Sirius. Through three sepa-

rate yet interlinked processes, we

systematically identify and manage

operational and HSE risks, commercial

risks and strategic risks, all with an

integrated CSR perspective.

At the end of 2010 the following initia-

tives were ongoing for the integration

of sustainability locally and globally.

• Mapping CSR conditions and risks

for each operation, requesting a

materiality analysis as a basis for a

local plan. A tool is currently being

developed and has been tested in

Brazil and Venezuela.

• The formalisation of high level

commercial and strategic decision

support, including which markets to

enter, rig purchase and cooperation

with customers in an internal CSR

consultation perspective has been

subject to further work.

• Furthermore, development of an

awareness campaign on the eight

Maersk principles of conduct has

taken place. The campaign will be

launched in early 2011, as a means

of driving CSR implementation and

making the principles relevant and

operational for daily use.


Working with sustainability Sustainability Report 2010 11

Maersk Drilling

As part of the A.P. Moller - Maersk Group,

Maersk Drilling is committed to the

UN Global Compact, and has been

part of a group initiative in 2008

to identify gaps versus the require-

ments in the UN Global Compact,

leading to Group initiatives on anti-

Globally Committed

corruption, responsible procurement

and global labour principles.

The group-wide anti-corruption

policy has been implemented

including training of key personnel.

Furthermore, during 2010 initia-

tives on responsible procurement

and global labour standards have

been set out. Combined with the

HSE efforts, these initiatives will

be a platform for basic compliance

and business conduct and will help

us to go beyond.

Drilling efficiency: Maersk Drilling offers world class drilling efficiency through our world class product solutions


Integrating sustainability in all business processes is the ultimate goal for us, as it is for most business units in the A.P. Moller - Maersk Group.



Maersk Drilling

The integration of sustainability

aspects in all relevant business

processes was reinforced and for-

malised through the finalisation of a

full CSR strategy for Maersk Drilling

in 2010.

Maersk Drilling already has an HSE

strategy and with the new CSR

strategy, we cover the full area of

sustainability comprised of HSE

and CSR in combination.

The strategy states our intent to

strengthen our CSR potential and

performance in order to support our

position in the drilling market, through

continuously improving our environ-

mental performance and involvement

in the communities in which we

operate.

The strategy is based on analysis of

external trends and internal dialogue.

Reputation and compliance are

important focus areas with most

external stakeholders, specifically

with regards to how the exploration

of oil fields impacts the environment

and local communities. Furthermore,

there is continued emphasis on risk

management on safety, emissions

and spills.

iMpleMentation actiVities

The launch of the strategy has

taken place internally through our

senior management team and

involved functions and generally

communicated through our intranet

and printed employee magazine.

In future issues this magazine will

include at least one CSR feature, lo-

cating the best examples from local

operations on sustainability work.

As a further initiative, our business

process improvement team has been

involved and requested to challenge

the mindset of business process

owners to integrate triple bottom line

thinking into new or ongoing develop-

ment of processes.

a sYsteM Based inteGration

Integrating sustainability in all busi-

ness processes is the ultimate goal

for us, as it is for most business units

in the A.P. Moller - Maersk Group. This

serves to support operational excel-

lence, reduce inefficiencies and hidden

costs, build client relations as well as

Our approachto sustainability

Maersk Drilling strives to exceed the compliance requirements with local and international rules and regulations for safety, environmental performance, community involvement and our business conduct with customers, suppliers and other industri partners.


Sustainability Report 2010Working with sustainability 14

Maersk Drilling

Our CSR Strategy

other vital partnerships, and reinforce

our team spirit and our brand as a

value driven and sustainability minded

employer.

As a main tool for the achievement

of this goal, Maersk Drilling uses the

web-based management system,

Sirius. All business processes mapped

in the system have been reviewed for

the inclusion of sustainability issues

where relevant. The work of integrat-

ing sustainability in the system at a

practical level will be ongoing through-

out 2011. Sirius is compliant with ISO

9001, ISO 14001, OHSAS 18001, ISM

and ISPS.

Sirius was rolled out to the organisa-

tion in 2010. This included training of

all relevant rigs through courses and

e-learning. 350 people were trained

in seven locations, corresponding to

over 15 % of all employees. The inten-

tion is for those trained to cascade

training to their colleagues locally and

serve as super users.

It is the firm conviction of

Maersk Drilling that Sirius will

provide both employees and

customers with a more consistent

management system quality as

well as higher safety and environ-

mental performance in all the work

performed.

As for tracking our CSR perfor-

mance, we shall , in addition to our

HSE metrics on LTIs, TRCF, spills,

waste recycled and emissions,

implement CSR measures in 2011.

These measures are aimed at track-

ing progress while also serving to

diagnose and adjust the initiatives

in the CSR strategy. The measures

will be based on:

We will strengthen our CSR poten-

tial and performance in order to

support our success in the market-

place whilst improving our impact

on the environment and the com-

munities in which we operate.

Our ambitiOn

We will build upon our values, our

principles of conduct, our manage-

ment system and the business

integration of key initiatives.

Our resOurces

This will be achieved by :

• Improving our environmental

performance through technical

improvements, commercial part-

nerships and vigilant operational

behaviour.

• Strengthening our community

involvement through increased

understanding, managed pro-

cesses and a shared toolbox.

• Securing consistent and high

standards on how we conduct

our business in relation to human

rights, labour standards and anti-

corruption through our manage-

ment system.

• Promoting and enabling triple

bottom line thinking (people,

planet and profits) and stake-

holder engagement at local and

corporate level.

• Communicating transparently,

internally and externally, to

document and promote our CSR

profile and ambition.

• Driving continuous progress

and improvements through a

designated CSR management

process, reporting and CSR port-

folio management.

Our apprOach



Maersk Drilling

• a CSR risk and mitigation survey

which measures exposure to risks

and strengths of mitigations, asset

by asset, • specific questions in our annual

Employee Engagement Survey to

monitor CSR visibility and culture,• a customer satisfaction survey

including CSR specific questions as

for 2010, • and finally, more specific measures

in relation to anti-corruption, human

rights monitoring and supplier as-

sessment and audits.

awardinG sustainaBilitY

perforMance

In line with the Maersk Drilling policies

of encouraging health and safety in

the workplace and protecting the

external environment, an HSE Award

scheme has been developed, widen-

ing the scope of a previous award

scheme which focused on zero LTI

performance only. This approach is

part of an initiative in our strategy

which outlines that our work on

environmental issues should be inte-

grated into our strong safety perfor-

mance and management structures.

The HSE Award scheme, promoted

and effective from 1 January 2011,

will recognise the achievement, by

both personnel and rigs, of mile-

stones not onlyregarding safety

but also health and environmental

protecting performance.

An HSE Award Certificate will be

awarded to a rig upon completion of a

period of 90 Operating Days without

any Recordable HSE Event, defined as:

• ZERO TRC (Total Recordable Cases,

including Medical Treatment Cases,

Restricted Work Cases, Lost Time

Incidents and Fatalities), irrespec-

tive of personnel category involved

in the TRCs,• ZERO dropped object over 40 Joules,• and ZERO spills to the external

environment.

These changed conditions for achiev-

ing the certificate allow us to reinforce

the increasing focus on environmen-

tal performance from customers,

regulators and employees. We can

also support the goals set to ensure

a safer workplace for our employees

and to contribute to environmental

improvement. Just as we will chal-

lenge ourselves, after having achieved

a very low and improving trend in

LTI frequency and having achieved a

performance outranking the industry

benchmark for over 10 years.

No external awards was given to Mae-

rsk Drilling in 2010.


Sustainability Report 2010Performance and policies 16

Maersk Drilling

Our stakeholder engagement approach and process is designed in accordance with the AA1000-SES standard



Maersk Drilling

Stakeholder engagementOur work to engage with stakeholders

was initiated in 2010, both globally

and locally to enhance our under-

standing of stakeholder and commu-

nity needs.

Dialogue meetings have been initiated

with major customers, specifically

aimed at identifying how we as a drill-

ing contractor can work with the oil

companies in terms of CSR. Contrary

to safety and environmental require-

ments, which are an integral part of

tender processes and contracts in

this field of business, CSR is relatively

novel to the drilling community and

this is a necessary first step.

Maersk Drilling also participated in

a global stakeholder mapping and

scanning project conducted by the

A.P. Moller - Maersk Group. The final

and aggregate results of this will not

be available until later in 2011, but the

process in itself has aided us in defining

our stakeholders. The generic segments

surveyed were: authorities, suppliers,

international bodies, NGOs, labour or-

ganisations, media and our employees.

local enGaGeMent

MoVes up the aGenda

Part of our CSR strategy is a priority

focus on community involvement.

For this we are preparing a set of

shared guidelines and a tool for

community involvement. Each rig

or department will be requested to

map stakeholders and analyse their

interrelation with Maersk Drilling to

improve how we handle and respond

to stakeholders. Entered into the web-

based tool currently being developed,

this process will provide the rig with a

plan grouping stakeholders into three

segments: engage, monitor and re-act.

The process is designed in accordance

with the AA1000-SES standard and

will be implemented early in 2011. The

entire organisation, both headquarters

and local units, will be involved in this

exercise, providing us with an overview

of both opportunities for dialogue and

risk management needs.

Each rig in Maersk Drilling is already

responsible for identifying and

managing stakeholders in relation

to regulatory requirements. The

identification of stakeholders is an

integrated part of our operation and

commercial set-up, as environmental

and safety processes have specific

steps where rigs are required to map

external requirements.

Finally, Maersk Drilling is involved in a

number of industry related organisa-

tions and initiatives, i.e. IADC and

IPIECA and works together with the

UN Global Compact office. Please

refer to the respective homepages for

further information.

Maersk Drilling does not define public

policy positions or participate in public

policy development or lobbying. These

responsibilities reside with the A.P.

Moller - Maersk Group.

eMploYees and

custoMers surVeYs

To gauge the opinion of our most

important stakeholder groups,

Maersk Drilling carries out two annual

surveys: a Customer Satisfaction

Survey of current and potential cus-

tomers, and the A.P. Moller - Maersk

Employee Engagement Survey.

The customers are questioned on a

range of topics covering; People & Ap-

proach, Project Management, Units &

Equipment, Operational Performance,

Safety & Environment and Price &

Quality, all on a 1 – 7 scale. In 2010, 48

customers responded to the survey

giving an overall response rate of 29 %.

The overall satisfaction score for

Maersk Drilling in 2010 was 4.9,

ranking slightly below the 5.0 result

achieved in 2009.

Maersk Drilling performs well on

“other CSR activities” receiving a high

score of 5.7 rated second best in the

survey. With the scores of 5.4 and 5.3

for commitment to the protection

of the environment and strength

of safety culture in Maersk Drilling

respectively; these topics also appear

on the top ten list of questions with

the highest score outcomes.

For the annual survey of employee en-

gagement we were pleased to see that

the overall score for Maersk Drilling was

maintained despite our restructuring.

For further information see page 20.

Results of the survey led to defining

two main focus areas in 2011, namely

improved communication on the link

between pay and performance, and im-

proved visibility on career development

opportunities. 84 % of the employees

in Maersk Drilling participated in the

survey.


Maersk Drilling operates in most regions of the world and employs a diverse group of employees. We see diversity as a benefit to the organisation.


Performance and policies Sustainability Report 2010 19

Maersk Drilling

MD Nationality

Africa

Asia

North America

Other Europe

South America

Oceania

Norway

United Kingdom

Denmark

37 %

19 %

18 %

7 %

6 %

5 %0 %

0 % 8 %

Maersk Drilling as an employer

Maersk Drilling is focused on building

the competencies of our workforce.

A new Human Resources system

was implemented in 2010, SAP HR,

providing employees with a better

overview of learning opportunities

within their position. Additionally, the

system gives the manager a clear

overview of competency gaps in his or

her team. This will assist in providing

better service to our customers, as

well as in creating cost-efficiencies in

our HR-function.

In 2010, each offshore employee

had 69.8 hours of instructor-led

courses, equivalent to 8.7 work days.

The course days are split between

technical training, safety training

and personal development. For 2010

our data does not cover onshore

employees.

diVersitY

Maersk Drilling operates in most

regions of the world and employs a

diverse group of employees. We see

Maersk Drilling employs approximately 3,200 persons, excluding our joint venture operations in Egypt. The workforce composition shows a split of 84 % offshore employees and 16 % onshore.

diversity as a benefit to the organisa-

tion. The distribution of nationalities

for both the onshore and offshore

workforce can be viewed below.

At present, we do not have valid data

to show nationality distribution at

managerial level, but it remains a

fact that women and non-Danes are

underrepresented in management in

Maersk Drilling.

Historically, the workforce in

Maersk Drilling has been dominated

by men, and as evident from below

graphs, this is still the case today, par-

ticularly in the offshore segment.

As part of the global roll-out of the

the A.P. Moller - Maersk Group’s diver-

sity project, Maersk Drilling is inves-

tigating the root-causes for the low

number of women in management.



Maersk Drilling

Gender onshore

Female

Male

67 %

33 %

Gender offshore

Female

Male

99 %

1 %

The focus is on recruitment, work-life

balance, promotion and employee

development. The investigation aims

to challenge established myths on

and commonplace explanations to

gender underrepresentation.

restructurinG onshore

In 2010 Maersk Drilling finalised the

restructuring of the onshore organisa-

tion, and as a consequence approxi-

mately 100 onshore positions were

made redundant leading to 52 per-

sons being affected. The redundancy

process was handled in accordance

with relevant national law, mostly

Danish law, requiring the company to

organise formal representation for all

employees made redundant and each

person was offered a suitable sever-

ance arrangement, including external

job counselling.

Locations outside of Copenhagen

saw the most significant changes,

as the organisational set-up was

altered to improve the support of rig

operations. The organisation is now

structured in rig teams managing the

daily tasks within human resources,

health, safety and environment as

well as operational tasks. Each team

is headed by a Rig Manager. Due to

the size of our operations in Norway

and Australia, a Location Manager

with responsibility for legislative and

administrative tasks has also been

appointed at these locations.



Maersk Drilling

Health for all

Working offshore can be strenu-

ous due to several factors. Hard

weather, heavy machinery, high

noise levels and long shifts all affect

the daily life. Not to mention the

week-long separation from family

and friends.

In this setting, sound working envi-

ronments and healthy choices are

important. We seek to provide breaks

in offshore working life by establishing

relaxation rooms, fitness facilities and

healthy, nutritious meals. With regards

to health, our work is guided by the

A.P. Moller - Maersk Group Health

Strategy and the Maersk Drilling

Health Policy.

The management of our working

environment is integrated in the

overall management system which

complies with the principles of the

international standard of OHSAS

18001.

As a vital part of the system, we

measure and assess a wide range of

factors, e.g., noise, vibrations, light

and psycho-social impacts. These

are compiled into a Work Place As-

sessment (WPA), which forms the

basis for an occupational health and

working environment programme for

each rig, under the custody of a WPA

manager.

offshore work and

its iMpact on health

Maersk Drilling Norway has joined

‘PUSSH’, a longitudinal survey with the

purpose of examining how different

types of shift rosters are related to

work environment factors, such as

sleeping patterns, circadian rhythm,

health and from the impact of isolation

in work life, including both onshore and

offshore workers in the oil industry.

The project is a collaboration between

the National Institute of Occupational

Health (NIOH), the University of Bergen,

and the International Research Insti-

tute of Stavanger (IRIS).

While we feel an extended respon-

sibility for the health of our workers

offshore, we also want to promote a

sound life style at our office facilities.

wholesoMe food policY at Md

In 2010, several locations set up initia-

tives to improve health through better

diets. This included Lyngby headquar-

ters where a Galley Council and a Food

Policy were established, covering the

approx. 300 onshore employees to en-

sure a holistic and engaging approach

to food and drink offered at the head-

quarters. The Food Policy will ensure

that we constantly strive for our can-

teen and the food offered to be healthy

by nature and preparation and to offer

Our health pOlicy

It is the objective of Maersk Drilling to

provide a healthy work place promoting

healthy work practices with the aim to

continuously improve occupational health

and support a healthy lifestyle among

the company’s employees as well as con-

tracted and third party personnel.

This is achieved by:

• Management commitment.

• Compliance with the principles of

OHSAS 18001.

• Compliance with applicable occupa-

tional health laws and regulations.

• Positive promotion of health and well

being at work and supporting a healthy

lifestyle of the individual.

• Systematic management and control of

health risks.

• Monitoring health management through

surveys and reporting for improvement

purposes.

• Fostering continuous improvement

of occupational health by promoting

best practices and by establishing clear

objectives and targets.

a pleasant and appealing break from

work. The food should also embrace

diversity and observe ethnic balances,

and provide an inspiring and relaxed

atmosphere and meeting place.



Maersk Drilling

Our sAfETy POliCy

Maersk Drilling is committed to conduct-

ing our activities in a safe and secure work-

ing environment that prevents harm both

to our personnel as well as contracted

and third party persons working under

the direction of our companies. Safety

and security are top priorities. We focus

on protecting our personnel, assets and

operations.


• Management’s active demonstration

and commitment to safety and security.

• Promoting and driving a strong safety

culture and a secure environment in

which all employees share this commit-

ment.

• Compliance with the principles of OH-

SAS 18001, ISPS and ISM.

• Set ting targets for improvements

and through measuring and apprais-

ing achieving continuous improve-

ment.

• Compliance with or exceeding ap-

plicable safety and security laws and

regulations.

• Encouraging employees to freely report

ways and means to improve our overall

safety performance.

• Operating a “target zero” principle for

unsafe acts and conditions actively us-

ing lessons learned.

• Measurement and benchmarking per-

formance internally and against market

leaders.

• Systematic identification of risks and

hazards against clear acceptance

criteria.

Safety is by far the most important sustainability issue for Maersk Drilling. High safety standards and performance are essential for our licence to operate and to be in compliance with our policies and management system.

The defining moment in the offshore

industry in 2010 was the fire and

explosion on the Deepwater Horizon

drilling rig on 20 April. Eleven people

died, 17 were injured. No one in our

industry will be left untouched by this

terrible accident, which later turned

out to be one of the biggest acciden-

tal marine oil spills in history.

Maersk Drilling is well-positioned to

meet any new demands potentially

emanating from the accident, including

strengthened equipment requirements

and changes to drilling procedures.

The incident spurred a review of the

rights and responsibilities of senior

staff to stop an unsafe operation. This

led to Claus V. Hemmingsen sending

a letter to all senior staff, reminding

them of their right and obligation to

enforce their mandate to stop any job

if considered potentially dangerous.

Safety on our minds



Maersk Drilling

LTIF’s

Furthermore, as the magnitude of the

Macondo disaster became clear, Mae-

rsk Drilling, in cooperation with Maersk

Oil, formed a task force to investigate

and recommend actions to safeguard

us from similar risks.

safetY perforMance 2010

In 2010, Maersk Drilling maintained

another year with lower Lost Time

Incident Frequency (LTIF) of 0.61,

compared to both the figure in

Maersk Drilling 2009 (1.57) and the

figure in the drilling industry 2010

by Q4 was 1.95 for land and water.

21 of our 26 operating rigs achieved

the entire calendar year without an

Lost Time Injury.

The table on this page contains the

information of LTIF’s in each group

Asset type LTI frequency Working hours No. of LTIs

Midwater semi-submersible 0.00 953,771 0

International Jack-up 0.64 1,568,281 1

Deepwater semi-submersible 0.66 1,524,276 1

Harsh environment Jack-up 0.91 1,096,914 1

Drilling barges 1.14 1,746,784 2

Maersk Drilling (offshore only) 0.72 6,949,475 5

of assets and for Maersk Drilling off-

shore in total for 2010.

In 2010 we introduced third party

e-learning, requiring that all contrac-

tors and visitors boarding our rigs

are instructed in the Maersk Drilling

safety policies and culture prior to

starting work. The goal is to create

a shared safety culture and mindset

with all personnel working at our

premises.

Safety related incidents are also

subject to external scrutiny and

we systematically report any non-

compliance within HSE to the relevant

authorities.

The fatal accident onboard the

MÆRSK RESOLUTE, causing the

death of a third party employee as

reported in 2009, is currently under

investigation by the authorities.

Our goal is to create a shared safety culture and mindset with all personnel working at our premises

“It is our belief that oil companies in-

creasingly will look to rig contractors

with modern equipment and good

safety procedures that comply with the

new regulatory environment. We have

that,” says Claus V. Hemmingsen,

CEO of Maersk Drilling



Maersk Drilling

Continuous improvement of

our safety performance and the

elimination of accidents by growing

a strong safety culture is key to

reaching our goal of zero accidents.

These are some of our activities in

2010:

• In 2010, we rolled out our second-

generation management system,

Sirius, to 15 rigs worldwide.

2011 will see continued roll out and

implementation. It is our belief that

ensuring easier access to safety

processes will generate a safer

working environment.

• The safety organisation was

re-structured and strengthened

worldwide. A new operational

safety section was established as

part of the new rig team structure.

With this structure we are able to

provide quicker and more dedicated

advice and service to frontline

operations. This will improve our

safety performance.

• We have applied two complimen-

tary safety survey methodologies.

One is a global safety climate survey

to gain an overall picture of the

status of our safety climate. We

intend to use this survey score as

a benchmark for tracking develop-

ments from year to year. Another

is a safety culture survey system in

which we interview 15 – 20 persons

representing a range of employee

groups on a rig and examine related

findings. These surveys result in a

set of recommendations and action

plans for the rig in question. The

concept of safety culture surveys

was developed in 2009 and three

surveys were conducted in 2010.

• Risk management was brought up

in both the internal Macondo task

force and in our safety surveys as

an area with improvement poten-

tial. The risk management process

is under revision to improve ease

of use and understanding of the

process. The process will be final-

ised in 2010 and training will be

provided throughout 2011. In 2010

we mapped the relevant places

for hazard management to tie in

to our management system Sirius.

• Prevention of dropped objects was

again in focus in 2010, and a com-

prehensive campaign is planned for

roll-out in 2011.

• In October 2010, we held our Global

HSE Seminar with over 60 partici-

pants from around the world. Many

safety initiatives were discussed and

priorities set for 2011, leading to the

three focus areas compliance, com-

petence and management of risk.

In Maersk Drilling we focus on

health and safety in all aspects.

Many chemical products are used

on board our rigs. Prior to use, all

chemicals are risk assessed in

accordance with the chemical

management process in SIRIUS.

Chemicals are managed in SAP

EH&S. As part of the chemical

management process, all material

safety data sheets (MSDS) are to

be kept up to date. During the last

months, we have been working

with the Chemical Management

process in SAP EH&S, developing

an online catalogue where end-

users can log in and find any MSDS

required for any product used

offshore. We expect the online

catalogue to be rolled out globally

in the first quarter of 2011.

managing the risks frOm chemicals

Safety initiatives in 2010



Maersk Drilling

The A.P. Moller - Maersk Group contin-

ued the close collaboration with naval

forces and industry association to

maintain a high level of awareness and

preparedness when transiting piracy

infested waters, notably areas of the

Indian Ocean. In 2010, Somali pirates

adapted to changing circumstances

by attacking and hijacking merchant

ships in areas previously thought un-

reachable further into the Indian Ocean

and along the East African coast by us-

ing hijacked fishing vessels and dhows

as mother vessels. Armed robbery has

also become more frequent particu-

larly in West Africa, Latin America and

South East Asia.

Maersk Drilling operates the

MÆRSK DELIVERER in West Africa

and requires alertness to the risk of

piracy and armed robbery. Our crew

and assets are also at risk whenever a

rig passes Somalia as it is towed from

Asia to Europe or the US.

These assets were only sporadically

affected due to a high awareness level

coupled with training and prompt

alerting.

All ships in the A.P. Moller - Maersk

Group follow industry and naval rec-

ommendations set out in ´Best Man-

Dealing with piracyand armed robbery

agement Practices’ (BMP3) and group

activities. In addition, during the last

part of 2010, security assessments

for Maersk Drilling have been carried

out in high risk areas to have a pru-

dent approach to security. Logistics

& project support surveys describe

the current security environment in

the areas of interest. The assess-

ments were conducted to prepare

for potential future assignments and

operations and to warrant the peace

of mind of Maersk Drilling employees

and their relatives.

The assessments outline facts and

recommendations concerning security

management procedures, risk mitiga-

tion strategies, health issues, logistics

and support. Audits and assessments

of main suppliers, such as local airlines,

in the same areas have also been

initiated at the end of 2010 and will

continue into 2011 as required.


Maersk Drilling continues being committed to finding ways of reducing our environmental footprint, both in terms af greenhouse gas emissions and other environmental impacts.



Maersk Drilling

EnvirOnMEnTAl POliCy

Maersk Drilling is committed to protecting

the environment. This is reflected in the

emphasis we place on the environmental

aspects of managing our business off-

shore and onshore. By means of target

setting, awareness and training combined

with monitoring, we aim to continuously

reduce emissions, to avoid harm to the

environment and to find innovative im-

provement solutions.


• Management commitment to the

environmental performance.

• Conducting activities so as to meet or

exceed applicable environmental laws,

regulations and standards.

• Compliance with the principles of

ISO 14001.

• Protecting the environment with

the use of modern environmental

protective equipment.

• Coaching employees to understand

how their own activities can influence

the environmental impact of our

work.

• Environmental improvement activities

based on sustainable, cost beneficial

and proven principles relying on best

available technology as well as innova-

tion.

• Cooperation with external partners

regarding innovation and improvement

projects.

Climate change and environment

As global attention to climate change remains high on the agenda, and in the aftermath of the Deepwater Horizon accident in the Gulf of Mexico, Maersk Drilling is reinforcing its focus on environmental performance.

Maersk Drilling continues being com-

mitted to finding ways of reducing

our environmental footprint, both

in terms of greenhouse gas (GHG),

emissions and other environmental

impacts. This is a requirement of our

main stakeholders, regulators and

customers, as well as of our internal

policies and management systems.

We work together with the rest of the

industry in the IADC Environmental

Policy Advisory Panel (EPAP) to

improve both our own and industry

environmental performance.

GHG emissions, together with waste

management, are our primary environ-

mental impacts. We work to improve

our environmental performance in

accordance with our environmental

policy, which can be seen on this

page, and have recently renewed our

ISO14001 certificate, demonstrating

a comprehensive environmental man-

agement system. Read more on our

environmental aspects in appendix C.



Maersk Drilling

Reduce relative amount of CO2

co2 eMissions in 2010

In accordance with

A.P. Moller - Maersk Group strategy,

we have set a target of reducing our

CO2 emissions relative to production

by 10 % by 2012.

Maersk Drilling’s objective is to reduce

the relative amount of CO2 emitted

according to the following plan:

2010 2011 2012

Percent 2 % 5 % 10 %

We emitted 341 tonnes CO2 equiva-

lent in 2010 compared to 246 for

2009. As a rough relative measure,

the intensity expressed through CO2

equivalent per million man hours

shows an increase from 35 tonnes

CO2/mill man hours in 2009 to 42

tonnes CO2/mill man hours in 2010,

which equals an increase of 19 % and

7 % compared to our 2008 baseline.

This figure is highly influenced by a

number of factors i.e. drilling depth,

weather conditions, density of the

formations drilled etc. Most of these

factors are outside our control and

emphasise why developing a more

precise metric for measuring our rela-

tive GHG-intensity is vital for our work

to consistently track and document

improvements on our impact/emis-

sion. In 2010 we commenced work

with the Danish Technical University

as well as the IADC EPAP to reach this

goal.

From the beginning of 2010, measur-

ing the amount of external spills has

been included as a key performance

indicator for our operation. Unfortu-

nately, we had an increase of 5 exter-

nal spill incidents compared to 2009

and doubled the volume spilled. Inves-

tigation on causes of leaks and spills

is highlighted in our 2011 HSE Action

Plan. Furthermore, performance re-

garding external spills is also included

in our new HSE Award system.

The total waste generated last year

has reduced 35 % compared to 2009,

from 32 thousand tonnes in 2009

to 21 thousand tonnes in 2010. The

total amount of hazardous waste has

been reduced 16% and the volume of

recycled waste has gone up from 12 %

in 2009 to 14 % in 2010.

Appendix D describes how our envi-

ronmental performance is directly

influenced by the specific drilling con-

tract and the customer requirements.

strateGY proVides new focus

As part of our CSR strategy, we

have determined our way of work-

ing within the strategy priority area

entitled ‘Emissions and hazardous

materials’.

Our primary means to improve our

environmental performance will be

technical improvements on the rigs,

commercial partnerships and vigilant

operational behaviour.

We work to reduce air pollution by in-

stalling electronic equipment on our rigs

Protecting the environment: We constantly strive to go beyond compliance in environmental matters



Maersk Drilling

to achieve fuel savings. This will also

reduce our emissions of CO2 and NOX.

Drilling operations are characterised

by rapidly varying electrical loads at

which the equipment is operated. The

majority of equipment is driven by

large electric motors normally in the

range up to 1 megawatt. The older

drilling rigs with Direct Current (DC)

drilling motors operate in a manner

conducive to energy waste.

These issues are mitigated by use

of modern active electric filters,

resulting in a reduction in load current

supplied by generators which in turn

leads to a reduction in emissions by

10 % on our G-type rigs. In 2011, the

MAERSK GUARDIAN will be fitted with

electronic filters for fuel reduction

during its planned yard stay.

enerGY surVeY

Together with the A. P. Moller - Maersk

Group technology function and with

a 50 % financing by Maersk Oil, we

have in 2010 performed an offshore

energy survey on MAERSK RESOLVE,

one of our high-efficiency jack-up

rigs. Several modifications were

suggested to ventilation and cooling

systems, water systems and fuel

oil purifiers. While the survey was

related to the high-efficiency-rig type,

the findings have relevance for all our

rigs.

Performing these modifications is

estimated to give an annual fuel

saving of more than 8 % of total

consumption. Furthermore, all find-

ings have been transferred to our

newbuilding programme for imple-

mentation.

Metrics and targets• Comply with and go beyond legisla-

tive and regulative requirements

including performance permits

owned by customers. • Establish environmental KPI’s and

benchmarking.

leadership & commitment• Through management support,

training and awareness cam-

paigns promote an environmental

culture that matches our current

safety culture. • Finalise improvements from the

Green Rig project. • Establish an environmental group

in all locations.• Perform process excellence meth-

ods on relevant environmental

processes.

stakeholder management• Establish partnerships with se-

lected customers and other

A. P. Moller - Maersk business units.• Promote environmental innova-

tion projects through cooperation

with selected customers.

Marketing & communication• Initiate environmental campaign

following same patterns as safety

campaigns. • Yearly sustainability report.• Increase media coverage to pro-

mote our profile.

Technical Operation

and innovation• Initiate green technologies and in-

novation through dedicated senior

staff.• Improvement projects following

Green Rig project.

ecO – efficiency strategy 2009 – 2013

pursuinG our

enVironMental strateGY

Environmental improvement is part of

the company strategy and built into

the management system. We work

according to a comprehensive envi-

ronmental programme, which forms

the basis for our initiatives to reduce

the total impact on the environment

from offshore operations.

The Maersk Drilling objectives in the

eco-efficiency strategy for 2009 – 2013

can be seen in the table below.

Certain initiatives have been put on

hold this year including the Green

Rig project and establishing envi-

ronmental groups at all office loca-

tions. This is due to organisational

changes that have either reduced

available resources or changed the

relevance of the activity. Both these

initiatives will be resumed in 2011.

We work to develop an environmen-

tal culture that matches our strong

safety culture through new metrics

and awards and integration of the

environment into established safety

tools and processes. Progress in

other areas will be found in relevant

sections in this report i.e. technical

improvements and campaigning.


Maersk Drilling aims to maximise the use of local services and bring value to the community through our business



Maersk Drilling

Community involvement

Local content demands are often

high and focus on anything from local

staffing and sourcing to community

engagement through donations and

capacity building. Maersk Drilling aims

to maximise the use of local services

and bring value to the community

through our business. However,

requirements differ from area to area

and a specific approach is therefore

necessary for each area.

All sourcing in the future will be sub-

ject to the A.P. Moller - Maersk Group’s

Responsible Procurement initiative

the pilot was initiated in 2010 and still

ongoing and is mainly concerned with

testing and adjusting an e-tool for

on-boarding and assessment of sup-

pliers. Furthermore, we have a draft

3rd party Code of Conduct and legal

clauses ready to be implemented

after the pilot. In relation to this initia-

tive, audits of three shipyards were

carried out in 2010 and follow-up on

the findings is included in ongoing

business with the shipyards.

Investing in the local community is an integral part of tender processes and contractual agreements in the oil industry, known as ‘local content’.

For issues not related to sourcing,

Maersk Drilling is pursuing a sys-

tematic and sustainable approach,

and in 2010 we began drafting an

internal policy on philanthropy.

The policy will lead to activities

supporting both overall community

development and Maersk Drilling’s

long term business environment.

We will secure this by splitting our

local investments, contractual or

voluntary, for the majority to go

into development and capacity

building for local communities while

a minor percentage is to be ear

marked for donations.

Examples of capacity develop-

ment are investment in education,

health care and vocational training

relevant to the oil industry, often in

partnership with customers. Another

opportunity is the investment in the

development of local businesses

to support our logistical needs at a

level that meets our standards i.e. on

waste management.

VisiBle coMBat of corruption

The A.P. Moller - Maersk Group’s

anti-corruption policy and supporting

guidelines were launched in 2009,

and 2010 was in this respect dedi-

cated to further implementation.

Standard clauses were inserted in

contracts, due diligence material es-

tablished for entering into contracts

with agents and contractors and

counselling for managers and other

key personnel exposed to the risks

of corruption was carried out. No

additional training was made during

2010 as staff in the target audience

remained the same but for a few

exceptions.

Maersk Drilling has implemented the

A. P. Moller - Maersk Group whistle-

blower system using intranet

announcements and briefings to

introduce the system. For Maersk

Drilling no specific incidents of corrup-

tion have been suspected or identified

in 2010.


In Maersk Drilling we welcome any governmental and regulatory reviews and considerations as we firmly believe this will only lead to a safer and more sustainable industry.



Maersk Drilling

Social performance

Social performance

Our employees

Safety b

2009 2010Number of employees 2,867 3,198Gender (female/total) % 6 8Employee engagement % 70 70Performance appraisals % 91a 87

2009 2010Revenue USD million 1,285 1,627Electricity cost USD million 0.26 0.48

Lost time injury frequency (LTIF) industry benchmark 1.23 c 1.57 0.61Total recordable case frequency (TRCF) industry benchmark 4.38 c 6.58 5.13Lost time injury number 11 5Fatality d number 2 0

Environmental performance e

Other air emissions

Other environmental impacts

Energy consumption

Greenhouse gas (GHG) emissions

2009 2010Diesel (Scope 1 : off contract) 1,000 tonnes 6 5Diesel (Scope 3 : Client responsible) 1,000 tonnes 70 100Diesel Total (Scope 1 + Scope 3) 1,000 tonnes 76 104Fuel gas (Scope 3 : Client responsible) f 1,000 tonnes 0 1Electricity (Scope 2 : onshore offices only) g 1,000 MWh 4 5Direct energy consumption by primary energy source GJ 3,375,660 4,597,914Energy intensity MJ/USD turnover 2.0 2.8

GHG emissions 1,000 tonnes CO2 eq 246 341Direct GHG emissions (Scope 1 GHG Protocol) h

CO2 1,000 tonnes CO2 eq 19 15CH4 1,000 tonnes CO2 eq 0 0N2O 1,000 tonnes CO2 eq 0 0Indirect GHG emissions (Scope 2 GHG Protocol) i

CO2 j 1,000 tonnes CO2 eq 1 2CH4 j 1,000 tonnes CO2 eq 0 0N2O j 1,000 tonnes CO2 eq 0 0Direct GHG emissions (Scope 3 GHG Protocol) k

CO2 1,000 tonnes CO2 eq 224 318CH4 1,000 tonnes CO2 eq 0 0 N2O 1,000 tonnes CO2 eq 0 0GHG intensity kg CO2 / USD turnover 0.2 0.2

Waste total 32 21- recycled (composting, reused, recycled) 1,000 tonnes 4 3- solid (landfill, on-site storage, incineration) 1,000 tonnes 13 5- hazardous (controlled deposit) 1,000 tonnes 15 13Waste consumption- municipal water supplies/water utilities l 1,000 m3 12 11- drill water 1,000 m3 104 104SpillsNumbers of external spills (≥ 100 liters) 8 13 Numbers of external spills (< 100 liters) 10 12Total amount of external spills 1,000 liters 21 43

SOX 1,000 tonnes 0 0NOX 1,000 tonnes 6 9VOCs 1,000 tonnes 1 1

a Based on rough esti-mated.

b Following the IADC Incident Statistics Programe guidelines, Maersk Drilling should report only work-related incidents happened to our own employees and to our own subcontrac-tors during actual working hours when the premises is/are under the control of MD’s management system. According to this meth-odology of reporting, Maersk Drilling’s safety performances in 2009 and 2010 are presented as below:

c International Associa-tion of Drilling Contrac-tors Incidents Statistics Program 2010 Year to Date Summary Report by Category 3rd Quarter Numbers (water only).

d 1 fatality took place at a facility not controlled by MD and 1 fatality oc-cured to a 3rd personnel onboard MD offshore unit.

e No record of HFC, PFC, SF6, Particulate matters and Steel consumption.

f Fuel gas is only used for well testing on drilling units.

g Electricity consumption was only counted for onshore offices. The consumptions of the onshore offices shared between MD and MF were estimated based upon the split of MD/MF head counts.

h Off contract period only.i Only from electricity

purchased for onshore offices.

j Different conversion factors were applied according to regional locations. Please refer to “CO2 Emissions From Fuel Combuston” pub-lished by International Energy Agency.

k On contract period only.l Only from onshore office

consumption.


Sustainability Report 2010Appendices 34

Maersk Drilling

Appendix A:

GRI Standard Disclosure

Italic indicates that the indicator is only partly covered by the report.

GRI Standard Disclosures

section in report

Strategy and Analysis

1.1 Foreword by CEO Deep dive into sustainability – a message from the CEO

1.2 Description of key impacts, risks, and opportunities. Main impacts and risks

Organisational profile

2.1 Name of the organisation Company profile

2.2 Primary brands, products, and/or services Company profile; list of assets

2.3 Operational structure of the organisation Governance

2.4 Location of organisation’s headquarter Company profile

2.5 Number of countries where the organisation operates Company profile; geographic reach

2.6 Nature of ownership and legal form. Company profile

2.7 Markets served Company profile; geographic reach

2.8 Scale of the reporting organisation Company profile

2.9 Significant changes during the reporting period regarding size, structure, or ownership. Maersk Drilling as an employer

2.10 Awards received in the reporting period.

Report Parameters

3.1 Reporting period About the report

3.2 Date of most recent previous report (if any). About the report

3.3 Reporting cycle About the report

3.4 Contact point for questions regarding the report or its contents Colophon (back cover flap)

3.5 Process for defining report content About the report; topics included

3.6 Boundary of the report About the report; scope of the report

3.7 Specific limitations on the scope or boundary of the report About the report; scope of the report

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations etc. About the report; scope of the report

3.9 Data measurement techniques and the bases of calculations About the report; principles of data reporting

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, About the report and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

3.11 Significant changes from previous reporting periods in the scope, boundary, About the report or measurement methods applied in the report.

3.12 Table identifying Standard Disclosures in the report This table, Appendix A.

3.13 Policy and current practice with regard to seeking external assurance for the report. About the report

Governance, Commitment and Engagement

4.1 Governance structure of the organisation Company profile, Governance

4.2 Indicate whether the Chair of the highest governance body is also an executive officer. Governance


Appendices Sustainability Report 2010 35

Maersk Drilling

4.3 For organisations that have a unitary board structure, state the number of members Group Sustainability Report

of the highest governance body that are independent and/or non-executive members.

4.4 Mechanisms for shareholders and employees to provide recommendations or direction Group Sustainability Report to the highest governance body.

4.8 Internally developed statements of mission or values, codes of conduct, and principles Governance, Our approach relevant to economic, environmental, and social performance and the status of their to sustainability implementation

4.9 Procedures of the highest governance body for overseeing the organisation’s identification Governance, Our approach and management of economic, environmental, and social performance, including relevant to sustainability risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

4.12 Externally developed economic, environmental, and social charters, principles, or other Governance, Our approach to initiatives to which the organisation subscribes or endorses. sustainability, Stakeholder engagement

4.13 Memberships in associations and advocacy organisations Our approach to sustainability, Stakeholder engagement

4.14 List of stakeholder groups engaged by the organisation. Stakeholder engagement

4.15 Basis for identification and selection of stakeholders with whom to engage. Stakeholder engagement; local engagement moves up the agenda

Management Approach and Performance Indicators

EC1 Economic performance Fact sheet

EN3 Direct energy consumption by primary energy source. Factsheet

EN4 Indirect energy consumption by primary source. Factsheet

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, Climate change and environment; and reductions in energy requirements as a result of these initiatives. Eco-efficiency strategy 2009 – 2013

EN7 Initiatives to reduce indirect energy consumption and reductions achieved. Climate change and environment

EN8 Total water withdrawal by source. Factsheet

EN16 Total direct and indirect greenhouse gas emissions by weight Factsheet

EN17 Other relevant indirect greenhouse gas emissions by weight. Factsheet

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. Climate change and the environment; Reduced CO2 emissions in 2010

EN19 Emissions of ozone-depleting substances by weight. Factsheet

EN20 NOX, SOX, and other significant air emissions by type and weight Factsheet

EN23 Total number and volume of significant spills. Factsheet

EN26 Initiatives to mitigate environmental impacts of products and services, and extent Climate change and environment of impact mitigation.

LA1 Total workforce by employment type, employment contract, and region. Maersk Drilling as an employer

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number Safety performance, Factsheet of work-related fatalities by region.

LA8 Education, training, counselling, prevention, and risk-control programs in place to assist Health for all workforce members, their families, or community members regarding serious diseases.

LA12 Percentage of employees receiving regular performance and career development reviews. Factsheet

SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage Community involvement the impacts of operations on communities, including entering, operating, and exiting.

SO3 Percentage of employees trained in organisation’s anti-corruption policies and procedures. Governance; globally committed

SO4 Actions taken in response to incidents of corruption. Visible combat of corruption

SO5 Public policy positions and participation in public policy development and lobbying. Governance

SO8 Monetary value of significant fines and total number of non-monetary sanctions Safety performance 2010 for non-compliance with laws and regulations.

PR2 Total number of incidents of non-compliance with regulations and voluntary codes Safety performance 2010 concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

PR5 Practices related to customer satisfaction, including results of surveys measuring Stakeholder engagement, customer satisfaction. Employees and customers surveyed


The management of our working environment is integrated into the overall management system which complies with the principles of the international standard of OHsAs 18001.



Maersk Drilling

In Maersk Drilling we are commit-

ted to conducting our business in a

sustainable way and we therefore

adopt and adapt the overall Maersk

principles of Conduct.

supporting and respecting interna-

tionally proclaimed human rights• We respect human rights and

endeavour to ensure that we do not

contribute to human rights viola-

tions.

responsible business behaviour• We conduct our business in an

ethical and lawful manner, and we

will promote the same business

behaviour within our sphere of

influence.• We work against all forms of cor-

rupt practices, including bribery and

extortion.• We compete fairly everywhere we

do business.• We are committed to promoting

sustainable business practices in

our supply chain.

a good place to work• We treat every employee with

respect and dignity and are com-

mitted to creating a working envi-

ronment free from discrimination

and harassment, and one in which

diversity is encouraged.• We respect our employees’ rights

to associate freely – to form and to

join, or not to join, trade unions – and

to bargain collectively.• We do not tolerate any form of

forced or compulsory labour.• We prohibit the use of child labour.

protecting health and safety• We are committed to providing all

people working under our direction

with a healthy and safe work envi-

ronment, and continuously strive to

improve our performance.

Maintaining high security standards• We endeavour to take all precautions

necessary to maintain high security

standards and security awareness

within our organisation at all times.

supporting our customers• We wish to be recognised as a reli-

able, trusted and engaged partner

in all our business dealings.

protecting the environment• We protect the environment by

exercising constant care and

optimising our operations, and

endeavour to use natural resources

responsibly and reduce our environ-

mental impact.• We are committed to countering

climate change by striving to mini-

mise greenhouse gas emissions

from our business activities.

engaging with society• We strive to improve the ways

in which we contribute directly

or indirectly to the sustainable

development of the communities

in which we work and society at

large.• We are committed to being ac-

countable to our stakeholders and

report publicly on our performance.

Appendix B :

The Maersk Principles of Conduct


Sustainability Report 2010Appendices 38

Maersk Drilling

atMospheric eMissions

Primary gas released into the atmos-

phere include carbon dioxide (CO2),

methane (CH4), sulphur oxides (SOX),

nitrogen oxides (NOX) and volatile

organic compound (VOC). Carbon

dioxide and methane are green house

gasses leading to global warming,

SOX creates acid rain, while NOX has a

negative effect on health.

Among these gasses, CO2 is the one

with highest influence due to a high

volume of emission. The other gas-

ses are considered less significant

in relation to drilling and gas and oil

production due to low volumes of

emissions. Gas emissions are the

result of onboard combustion of fuel

for power production or flaring of

excess gas.

Drilling rigs consume marine diesel oil

for the main engines driving the power

generators and, to a lower extent,

diesel driven deck cranes and well

cementing units.

discharGes

Discharges of effluents originate in

drilling operations as well as oil and

gas production.

Maersk Drilling has some drilling

operations where drill cuttings are

processed and mixed with waste

drilling fluids and re-injected into the

formation (rock in the underground

surrounding the borehole). The process

is known as ‘slurry reinjection’ and ena-

bles a drilling operation to minimise the

discharge. Other aqueous drill cuttings

are discharged to the sea – depending

on the chemical composition of the

drill fluid. Prior to the discharge, the

cuttings will undergo a process of

cleaning and drying out the cuttings.

All offshore units produce other dis-

charges that originate from disposal

of sanitary water (sewage), bilge wa-

ter from engine room compartments

and deck bilge. Chemicals are used

offshore for various purposes mainly

in drilling mud and for processing

reservoir fluids. The use and discharge

of chemicals is performed under the

customer’s discharge permit, as it is

for produced water and drill cutting

discharges.

waste Generation

Regardless of type of operation, a

large variety of waste products are

generated and segregated on board

for further onshore treatment and

disposal. In some areas recycling is

performed.

Main waste products are drilling waste

(non fluid cuttings), household waste,

scrap metals, electrical waste, packing

materials and chemical waste (paints,

oils production and drilling chemicals)

which are normally managed in accord-

ance with contractual requirements

stipulated by the operator.

Aqueous drill cuttings are discharged

to the sea or re-injected into the for-

mation, while non-fluid drill cuttings

are shipped to shore for further treat-

ment and disposal. This is normally

the responsibility of the operator. In

certain areas, the cuttings are further

crushed and treated on board and re-

injected back into the reservoir.

resource consuMption

Maersk Drilling depends on fossil fuels

to power the drilling operations and

hydrocarbon production. Fresh water

and drill water (used for onboard

mixing of drilling fluid) are other vital

resources, however, in most opera-

tions this is water produced onboard

by means of water makers. Poor

onshore water resources will thus not

be affected in the first instance.

Appendix C :

Impact on the environment caused by offshore activities



Maersk Drilling

As general practice within the

offshore drilling industry, the legal en-

vironmental requirements are divided

between contractors and operators

which to a great extent influences the

way operation is conducted. There-

fore, the environmental performance

of Maersk Drilling is dependent on

close cooperation with the operators.

Compliance with environmental regu-

lations and requirements are divided

between contractual requirements

and general maritime environmental

regulations. The general maritime

regulations primarily focus on compli-

ance with the MARPOL Convention

dealing with oily water and sewage

discharges, waste management and

atmospheric emission control.

In the North Sea, drilling and produc-

tion related discharges are regulated

through the North East Atlantic

OSPAR Convention.

Drilling related discharges (re. drill

cuttings, see the description of our

environmental aspects in appendix

C) to the marine environment take

place in accordance with govern-

ment licensed discharge permits

which are always owned by the

operator. As a general rule, fuel oil,

drilling fluids and production chemi-

cals are provided by the operator for

a particular operation. This provides

the contractor with the foundation

to comply with the discharge permit,

but with limited room for influencing

the type of fuel, fluids or chemicals

used.

Shipment of waste products to

shore for final treatment and

disposal is managed in accordance

with contractual requirements

stipulated by the operator in order

to meet local landfill capacities and

opportunities for recycling of waste

products.

Appendix D :

Industry practice impact performance


we value your feedbackIf you have any questions, comments or suggestions about this report or our performance, we welcome your feedback. You can send your comments to:

Maersk drillingEsplanaden 501098 Copenhagen KDenmark

E-mail: [email protected]: +45 3363 1851

Print: This publication is send by mail to protect the environment

Editor: Michael Frederik Ellekjaer

Contributing writer: Eva Harpøth Skjoldborg

Layout: Hertz bogtrykkergården a/s

Colophon


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